Correlation Between F45 Training and Six Flags
Can any of the company-specific risk be diversified away by investing in both F45 Training and Six Flags at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining F45 Training and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F45 Training Holdings and Six Flags Entertainment, you can compare the effects of market volatilities on F45 Training and Six Flags and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in F45 Training with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and Six Flags.
Diversification Opportunities for F45 Training and Six Flags
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between F45 and Six is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment and F45 Training is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on F45 Training Holdings are associated (or correlated) with Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of F45 Training i.e., F45 Training and Six Flags go up and down completely randomly.
Pair Corralation between F45 Training and Six Flags
Given the investment horizon of 90 days F45 Training Holdings is expected to under-perform the Six Flags. In addition to that, F45 Training is 2.86 times more volatile than Six Flags Entertainment. It trades about -0.17 of its total potential returns per unit of risk. Six Flags Entertainment is currently generating about 0.03 per unit of volatility. If you would invest 3,742 in Six Flags Entertainment on August 30, 2024 and sell it today you would earn a total of 897.00 from holding Six Flags Entertainment or generate 23.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
F45 Training Holdings vs. Six Flags Entertainment
Performance |
| Timeline |
| F45 Training Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Six Flags Entertainment |
F45 Training and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F45 Training and Six Flags
The main advantage of trading using opposite F45 Training and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training position performs unexpectedly, Six Flags can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Six Flags will offset losses from the drop in Six Flags' long position.| F45 Training vs. Life Time Group | F45 Training vs. Bowlero Corp | F45 Training vs. Planet Fitness | F45 Training vs. JAKKS Pacific |
| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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